I have been lurking these forums for a couple of months so I know some people are going to respond that Tesla is all unicorns and rainbows but for the rest of us I have a question. My largest concern about buying a model 3 (besides that it will be, by far, the most expensive auto I have ever purchased) is a potential collapse of Tesla. I don’t want to buy this car with a shiny 4 year warranty then have tesla go out of business 3 months later, this car has to be able to get me to work for the next 6+ years. And while I know Tesla is always riding the edge it seems like more of its exes are abandoning ship, US demand isn’t great, they are trying to pull ever demand lever every created, they lost a ton in q1, wall street is worried, etc. Does anyone else share this concern?
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Largest concern about buying a model 3
- Thread starter Pkeet99
- Start date
It sounds like you should buy a different car.
Short much??? Even if they did....which I HIGHLY DOUBT, I’m sure glad I HAVE one of these amazing cars as a memento of this great movement! What a driving experience and unbelievable car. I’d STILL be laughing at all the ICErs.
Ski
Ski
You mean you’re concerned that Tesla will overnight cease to exist and your warranty and car will be worthless?
Probably should stop reading the news.
On that basis you’d never buy from Apple, Amazon, GM, any bricks and mortar store etc.
If it’s that much of a concern I wouldn’t buy any EV and instead go for one of those fancy Toyota self charging cars
Probably should stop reading the news.
On that basis you’d never buy from Apple, Amazon, GM, any bricks and mortar store etc.
If it’s that much of a concern I wouldn’t buy any EV and instead go for one of those fancy Toyota self charging cars
Tesla is far from a perfect well rounded car manufacturer. It will take them years to work out everything. IMO they got too big too fast and people have unreal expectations for them. Their cars are very well designed and engineered. I felt in love with my M3 more than I thought I would.
Zero chance they will just cease to exist. Even if they have to eventually file bankruptcy, that doesn’t mean they’ll no longer exist. Look at all the autos that filed bankruptcy a decade ago.
Absolute worst case they’ll get bought by someone. Far too valuable of a company with too many assets to just fold up shop.
Absolute worst case they’ll get bought by someone. Far too valuable of a company with too many assets to just fold up shop.
My head says maybe but my heart, which has wanted an electric car since I was a child building solar powered golf carts with my dad, says no. So trying to convince my rational head.
Well there is a big difference between buying an iPhone and a $35,000 carYou mean you’re concerned that Tesla will overnight cease to exist and your warranty and car will be worthless?
Probably should stop reading the news.
On that basis you’d never buy from Apple, Amazon, GM, any bricks and mortar store etc.
If it’s that much of a concern I wouldn’t buy any EV and instead go for one of those fancy Toyota self charging cars
. I can absorb those loses if they don’t pan out for one. But it’s a good point.
diamond.g
Active Member
There is always a Bolt, Leaf, I-PACE, and others as an option if you are serious about going electric.
Stanwood Steve
2018 Performance Model 3
I agree with M3Nicola. The concern by Pkeet99 is shared by many, and for the most part the concerns are propagated by the media. Tesla has been "more" than a minor disruptor to the auto industry - much more, which brings critics out of every crevice. The cars are amazing to drive - you can see this in the posts that flood the forums. Yes, there are issues that Tesla is working to correct. I spent over 38 years in the complex manufacturing business. Bringing a new car to market is hard and expensive. I've studied the Toyota manufacturing process and factories in Japan as well as Georgetown KY. I've also toured GM Shanghai. They're good but have decades of experience behind them. Tesla is still cutting its teeth but has accomplished more in its short time in the existence than anyone in the industry cares to acknowledge. I made the jump into Tesla with the Model 3 and haven't regretted the move. I have four other ICE vehicles that I can always fall back on, but I'm ready to start divesting them now. Ii've had my Model 3 for about eight months now. This is the future, and although the road is a bit "bumpy" at times, I'm convinced that the decision I made in March of 2016 (when orders for the Model 3 were initially taken), was the right one.
I'd be much more worried buying from a traditional carmaker. Many of them won't survive the transition to electric cars, which is clearly where the industry is headed, and Tesla has a huge lead over the competition.
You're reading fake news. Demand is substantial. Q1 sales dropped because they were shipping overseas, and so if you count sales of en route vehicles in Q1, they beat expectations. They just couldn't be counted as sales till they were actually delivered. Q2 should look better to wallstreet.
copyhacker
Member
The company makes the highest-selling premium car in America and the best-selling car period in some European countries. That’s way too valuable a brand to just disappear. Like others said, worst case someone else buys them. Hey, Fisker’s still around—sort of.
Tesla has no more turnover than other tech companies. It only “seems” that way because it’s a convenient narrative for the media.
Other than making a single print ad, TV commercial or web banner.
I see more of them every day around here. The biggest thing that’s going to drive demand right now is awareness—people seeing their neighbors pull up in a Model 3 and asking questions. Because there is no advertising, there’s a lack of readily available information to the average consumer—leading to all the talking points you mentioned.
The reasons for the Q1 losses have been well covered everywhere on this forum so I won’t go into them. Some of it was seasonal, some was growing pains and some was one-time weirdness. And this may sound glib, but Wall Street at large does not really understand Tesla (again, for a lot of reasons that have been discussed to death).
If you’re going to worry about something, I’d worry about Tesla’s customer service and communication issues that are probably going to get worse before they get better. Nothing they can’t solve once they decide to make it a priority, though.
Thanks SR. Or Toyota since they are so late to the party and that would give them a leg up.
I don't share the concern about demand overall.
My concern is that demand is for the SR, and I'm concerned about profitability of the SR./SR+. The manner of the launch of the SR in 2019Q1 raised a flag. Tesla needs to improve vehicle service, and I live 200 miles from the nearest service center.
I ordered when the SR was launched, but I then did a gut chuck and I'm sitting on my order for now.
If I lived in a different location, closer to Boston, MA, I'd probably have gone for it, since I'd be more confident about convenient access to alternative service in case Tesla is bought out. There are already independent people who work on Teslas, with an active salvage market, so I don't think support would completely disappear even if Tesla just became a Chinese badge.
My concern is that demand is for the SR, and I'm concerned about profitability of the SR./SR+. The manner of the launch of the SR in 2019Q1 raised a flag. Tesla needs to improve vehicle service, and I live 200 miles from the nearest service center.
I ordered when the SR was launched, but I then did a gut chuck and I'm sitting on my order for now.
If I lived in a different location, closer to Boston, MA, I'd probably have gone for it, since I'd be more confident about convenient access to alternative service in case Tesla is bought out. There are already independent people who work on Teslas, with an active salvage market, so I don't think support would completely disappear even if Tesla just became a Chinese badge.
Well, they haven't required government to step in and bail them out like the other manufacturers.
They are only reinvesting money into their products as opposed to making Wall Street happy
They are only reinvesting money into their products as opposed to making Wall Street happy
My take (full disclosure; I just bought a Model 3, but I’m not a shareholder.)
If suddenly, tomorrow, they ran out of money, a few possible scenarios:
- US Gov’t floated them a loan
- Elon dips in his pocket
- Some other company comes along and snaps them up
Shutting the doors and turning off the lights overnight isn’t going to happen.
There’s a half million of them out there, and some EXTREMELY advanced intellectual property. Someone - whether it be the government, or a tech company, or even an auto manufacturer - will ensure it stays alive. Of this I have ZERO doubts.
And even if you doubt that ... the car would still start and keep running. Keep in mind ... you can still get parts for a danged DeLorean.
There’s plenty of reasons not to buy a Tesla; concern that they’re going to suddenly Avengers-style vanish into the aether, to me, isn’t one of them.
If suddenly, tomorrow, they ran out of money, a few possible scenarios:
- US Gov’t floated them a loan
- Elon dips in his pocket
- Some other company comes along and snaps them up
Shutting the doors and turning off the lights overnight isn’t going to happen.
There’s a half million of them out there, and some EXTREMELY advanced intellectual property. Someone - whether it be the government, or a tech company, or even an auto manufacturer - will ensure it stays alive. Of this I have ZERO doubts.
And even if you doubt that ... the car would still start and keep running. Keep in mind ... you can still get parts for a danged DeLorean.
There’s plenty of reasons not to buy a Tesla; concern that they’re going to suddenly Avengers-style vanish into the aether, to me, isn’t one of them.
golfpilot
Member
There are over 300k Model 3's on the road. Even if Tesla collapses you'll be able to get Model 3 parts for decades. There were only 2600 Rav4's made and if you need them you can get the parts you need. Sure, if the company collapses you lose your warranty. If you think Tesla cars are a load of garbage and the company is going to tank, don't buy the car.
I honestly don’t believe the US government would allow that. Tesla is now one of the stalwarts of the US tech industry. They’d figure out another way long before they turn that over.
Another reason I don’t worry about it.
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